To require a parent who is chronically delinquent in child support to include the amount of the unpaid obligation in gross income.

1. Adds SEC. ____. CHILD SUPPORT ENFORCEMENT at the end of subtitle C of title V

   Adds a section

   In S. 1054 · Placed on Calendar Senate

   (c) Effective Date.--The amendments made by this section shall apply to amounts paid or accrued after the date of enactment of this section in taxable years ending after such date.

   Inserted: SEC. ____. CHILD SUPPORT ENFORCEMENT.

   Inserted: (a) Inclusion in Income of Amount of Unpaid Child Support.--Section 108 (relating to discharge of indebtedness income) is amended by adding at the end the following new subsection:

   Inserted: "(h) Unpaid Child Support.--

   Inserted: "(1) In general.--For purposes of this chapter, any unpaid child support of a delinquent debtor for any taxable year shall be treated as amounts includible in gross income of the delinquent debtor for the taxable year.

   Inserted: "(2) Definitions.--For the purposes of this subsection--

   Inserted: "(A) Child support.--The term 'child support' means--

   Inserted: "(i) any periodic payment of a fixed amount, or

   Inserted: "(ii) any payment of a medical expense, education expense, insurance premium, or other similar item, which is required to be paid to a custodial parent by an individual under a support instrument for the support of any qualifying child of such individual. 'Child support' does not include any amount which is described in section 408(a)(3) of the Social Security Act and which has been assigned to a State.

   Inserted: "(B) Custodial parent.--The term 'custodial parent' means an individual who is entitled to receive child support and who has registered with the appropriate State office of child support enforcement charged with implementing section 454 of the Social Security Act.

   Inserted: "(C) Delinquent debtor.--The term 'delinquent debtor' means a taxpayer who owes unpaid child support to a custodial parent.

   Inserted: "(D) Qualifying child.--The term 'qualifying child' means a child of a custodial parent with respect to whom a dependent deduction is allowable under section 151 for the taxable year (or would be so allowable but for paragraph (2) or (4) of section 152(e)).

   Inserted: "(E) Support instrument.--The term 'support instrument' means--

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   Inserted: "(i) a decree of divorce or separate maintenance or a written instrument incident to such a decree,

   Inserted: "(ii) a written separation agreement, or

   Inserted: "(iii) a decree (not described in clause (i)) of a court or administrative agency requiring a parent to make payments for the support or maintenance of 1 or more children of such parent.

   Inserted: "(F) Unpaid child support.--The term 'unpaid child support' means child support that is payable for months during a custodial parent's taxable year and unpaid as of the last day of such taxable year, provided that such unpaid amount as of such day equals or exceeds one-half of the total amount of child support due to the custodial parent for such year.

   Inserted: "(3) Coordination with other laws.--Amounts treated as income by paragraph (1) shall not be treated as income by reason of paragraph (1) for the purposes of any provision of law which is not an internal revenue law.".

   Inserted: (b) Effective Date; Implementation.--The amendments made by is section shall apply to taxable years beginning after December 31, 2002. The Secretary of the Treasury shall publish Form 1099-CS (or such other form that may be prescribed to comply with the amendment made by subsection (b)(1)) and regulations, if any, that may be deemed necessary to carry out the purposes of this Act, not later than 90 days after the date of enactment of this Act.

   Original wording

   At the end of subtitle C of title V, add the following:

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As printed